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European shares lower; China concerns hurt miners
Thu, 11th Mar 2010 12:21
By Harpreet Bhal
LONDON, March 11 (Reuters) - European shares were slightly
lower at midday on Thursday, with miners weak on fears of policy
tightening in China, while Volkswagen led carmakers
higher.
By 1147 GMT, the pan-European FTSEurofirst 300
index of top shares was down 0.1 percent at 1,058.10 points,
having closed at 1,058.81 points in the previous session -- its
highest close since Jan. 19.
Miners tracked weaker commodity prices as investors fretted
about the prospect of monetary tightening in top consumer China
where consumer inflation rose to a 16-month high in February.
Anglo American, Eurasian Natural Resources,
Kazakhmys, BHP Billiton, Xstrata and Rio
Tinto shed 1.0-2.7 percent.
'The numbers released by China (are ...) provoking fears
that China will effectively intensify their restrictive stance
on monetary policy,' said Heino Ruland, strategist at Ruland
Research in Frankfurt. 'That will have an adverse impact on
companies that are well positioned in China.'
Volkswagen was a big gainer, up 3.6 percent, as it affirmed
2010 guidance for higher revenue. Traders said investors were
covering short positions after the company said it may not issue
as many as 135 million new preferred shares in the first half.
Within the sector, Fiat, Peugeot, Porsche and Renault rose 0.6-2.1 percent.
Utilities were also higher, with Snam Rete Gas up 1
percent after the company left capital spending for the 2010-13
unchanged and said it expected annual dividend growth of 4
percent in the next three years.
Among individual movers, Lagardere lost 7.1
percent after 2009 earnings and a grim outlook from the world's
largest publisher of consumer magazines disappointed investors.
Insurer Old Mutual lost 2.4 percent after saying it
planned to sell its life business and partly float its asset
management operation in the United States as part of a strategic
shake-up aimed at simplifying its structure.
On the upside, Thomas Cook gained 2.6 percent as
investors reacted positively to Wednesday's strategy
presentation by the tour operator during which it set a target
of increasing its operating margin to 5.5-6.0 percent in the
next 3-5 years.
Across Europe, Britain's FTSE 100 shed 0.2 percent,
Germany's DAX gained 0.1 percent and France's CAC 40 was 0.2 percent lower.
BANKS PRESSURED
Banks were lower, with Barclays, Banco Santander , Societe Generale, BNP Paribas and
UBS off 0.2-1.7 percent.
HSBC shed 0.8 percent. The bank said the theft of
data by a former employee affected about 15,000 Swiss client
accounts, after previously saying it affected 'less
than 10
clients'.
On the economic front, Britons' expectations for inflation
over the next 12 months rose to 2.5 percent in February from 2.4
percent in November, a Bank of England survey showed.
Later in the session, investors will focus on data from the
U.S. including weekly jobless claims and January's international
trade figures, both due at 1330 GMT.
(Editing by Dan Lalor)
Keywords: MARKETS EUROPE STOCKS ============================================================= For rolling updates on what is moving European shares please click on ============================================================= For pan-Europeanmarket data and news, click on codes in brackets: European Equities speed guide................... FTSEurofirst 300 index.............................. DJ STOXX index...................................... Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurofirst 300 sectors................... Top 25 European pct gainers....................... Top 25 European pct losers........................ Main stock markets: Dow Jones............... Wall Street report ..... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt market stories CAC-40................. Paris market stories... World Indices...................................... Reuters survey of world bourse outlook.......... Western European IPO diary........................... European Asset Allocation......................... Reuters News at a Glance: Equities............... Main currency report:............................... Keywords: MARKETS EUROPE STOCKS/ =2
(harpreet.bhal@thomsonreuters.com; +44 207 542 4533; Reuters Messaging: harpreet.bhal.thomsonreuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2010. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
LONDON, March 11 (Reuters) - European shares were slightly
lower at midday on Thursday, with miners weak on fears of policy
tightening in China, while Volkswagen led carmakers
higher.
By 1147 GMT, the pan-European FTSEurofirst 300
index of top shares was down 0.1 percent at 1,058.10 points,
having closed at 1,058.81 points in the previous session -- its
highest close since Jan. 19.
Miners tracked weaker commodity prices as investors fretted
about the prospect of monetary tightening in top consumer China
where consumer inflation rose to a 16-month high in February.
Anglo American, Eurasian Natural Resources,
Kazakhmys, BHP Billiton, Xstrata and Rio
Tinto shed 1.0-2.7 percent.
'The numbers released by China (are ...) provoking fears
that China will effectively intensify their restrictive stance
on monetary policy,' said Heino Ruland, strategist at Ruland
Research in Frankfurt. 'That will have an adverse impact on
companies that are well positioned in China.'
Volkswagen was a big gainer, up 3.6 percent, as it affirmed
2010 guidance for higher revenue. Traders said investors were
covering short positions after the company said it may not issue
as many as 135 million new preferred shares in the first half.
Within the sector, Fiat, Peugeot, Porsche and Renault rose 0.6-2.1 percent.
Utilities were also higher, with Snam Rete Gas up 1
percent after the company left capital spending for the 2010-13
unchanged and said it expected annual dividend growth of 4
percent in the next three years.
Among individual movers, Lagardere lost 7.1
percent after 2009 earnings and a grim outlook from the world's
largest publisher of consumer magazines disappointed investors.
Insurer Old Mutual lost 2.4 percent after saying it
planned to sell its life business and partly float its asset
management operation in the United States as part of a strategic
shake-up aimed at simplifying its structure.
On the upside, Thomas Cook gained 2.6 percent as
investors reacted positively to Wednesday's strategy
presentation by the tour operator during which it set a target
of increasing its operating margin to 5.5-6.0 percent in the
next 3-5 years.
Across Europe, Britain's FTSE 100 shed 0.2 percent,
Germany's DAX gained 0.1 percent and France's CAC 40 was 0.2 percent lower.
BANKS PRESSURED
Banks were lower, with Barclays, Banco Santander , Societe Generale, BNP Paribas and
UBS off 0.2-1.7 percent.
HSBC shed 0.8 percent. The bank said the theft of
data by a former employee affected about 15,000 Swiss client
accounts, after previously saying it affected 'less
clients'.
On the economic front, Britons' expectations for inflation
over the next 12 months rose to 2.5 percent in February from 2.4
percent in November, a Bank of England survey showed.
Later in the session, investors will focus on data from the
U.S. including weekly jobless claims and January's international
trade figures, both due at 1330 GMT.
(Editing by Dan Lalor)
Keywords: MARKETS EUROPE STOCKS ============================================================= For rolling updates on what is moving European shares please click on ============================================================= For pan-Europeanmarket data and news, click on codes in brackets: European Equities speed guide................... FTSEurofirst 300 index.............................. DJ STOXX index...................................... Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurofirst 300 sectors................... Top 25 European pct gainers....................... Top 25 European pct losers........................ Main stock markets: Dow Jones............... Wall Street report ..... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt market stories CAC-40................. Paris market stories... World Indices...................................... Reuters survey of world bourse outlook.......... Western European IPO diary........................... European Asset Allocation......................... Reuters News at a Glance: Equities............... Main currency report:............................... Keywords: MARKETS EUROPE STOCKS/ =2
(harpreet.bhal@thomsonreuters.com; +44 207 542 4533; Reuters Messaging: harpreet.bhal.thomsonreuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2010. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
